Last Updated: 8 November 2024
Quantum computing is making notable progress in the tech industry, with some companies achieving unicorn status even when their products are still years from launch. This gap between funding and actual products might have seemed strange in the past, but quantum computing is opening new doors, particularly for venture capitalists.
PsiQuantum aims to build a fault-tolerant, million-qubit quantum system by employing a practical and scalable approach. On their website, they express a commitment to advancing quantum computing through innovations in superconducting materials, photonics, and the overall development of quantum systems.
PsiQuantum announced a $450 million Series D funding round, featuring investors like Microsoft's venture arm, M12, as well as Ballie Gifford, Blackbird Ventures, and Temasek, with BlackRock leading the investment. For many companies, the logical next step after such funding is to go public. However, for a quantum computing company like PsiQuantum, which has not yet released products to the broader market, an IPO might be premature.
It's not typical to see Series E or F rounds before going public or being acquired by another company.
PsiQuantum's leadership made it clear that they are playing the long game, and for now, going public isn't on the immediate horizon. Microsoft, with its own quantum ambitions, has maintained close alignment with PsiQuantum, tracing its evolution since Series C.
We have a very good alignment in terms of the philosophy with Microsoft, they’ve been doing this a long time with a big team and they’re very serious
Jeremy O'Brien, PsiQuantum CEO and co-founder
PsiQuantum is focused on building a fault-tolerant quantum computer with a scalable and proven manufacturing process. Their unique technology involves manipulating single photons using photonic circuits patterned onto a silicon chip through standard semiconductor manufacturing processes. PsiQuantum is leveraging GlobalFoundries' advanced semiconductor tools to manufacture quantum photonic chips and cryogenic electronic chips that control the qubits.
PsiQuantum aims to raise the necessary capital to take the Q1 quantum computer from concept to reality. This computer has recently entered the manufacturing phase at GlobalFoundries. The two companies have collaborated to integrate superconducting photon detectors into the 300mm manufacturing process, advancing towards scalable quantum device production. Although PsiQuantum does not yet have a functioning quantum computer, they foresee a path to a million-qubit, fault-tolerant system within the coming years.
As PsiQuantum's Chief Strategy Officer, Pete Shadbolt, highlighted, the startup already has a "handful" of paying customers interested in algorithms for chemistry and finance, even without a functional quantum system. He emphasized that further developing the technology will be an expensive endeavor, requiring a significant investment in semiconductor process development and manufacturing.
The journey so far has been costly, with PsiQuantum investing heavily in manufacturing tools and novel technologies, including superconducting photon detectors. The manufacturing process involves significant R&D and a large number of wafers, making it an expensive undertaking.
"We’ve been patenting our work since the founding of the company, patenting across entire technical spectrum, all the way to basic semiconductor processing to materials development up to quantum algorithms and everything in between—packaging, devices, photonics, CMOS electronics, cryogenic systems, error correcting codes"
Pete Shadbolt, PsiQuantum, CSO
He hinted that similar investments would be required soon, underscoring the high costs involved.
The quantum devices being developed by PsiQuantum combine traditional packaging, control systems, and other well-understood technologies at GlobalFoundries, with novel photonics and cryogenic features. Once proven at scale, these quantum technologies could attract interest from cloud providers eager to offer stable, manufacturable quantum services.
PsiQuantum has an extensive portfolio of patents covering everything from semiconductor processing to quantum algorithms. Shadbolt emphasized the importance of intellectual property across the entire technical spectrum, from materials development to photonics, CMOS electronics, cryogenic systems, and error correction codes.
Microsoft's involvement in PsiQuantum's journey is noteworthy, suggesting the potential for a significant quantum acquisition in the near future. While companies like Amazon are focusing on creating "marketplaces" for quantum services, Microsoft is making its own investments in building quantum machines. PsiQuantum’s partnership with GlobalFoundries could position Microsoft to dominate the quantum cloud landscape.
PsiQuantum's CEO, Jeremy O'Brien, envisions a world with million-qubit quantum systems.
This isn’t something that is incrementally better, or even an order of magnitude better than conventional computing—it’s world-changing
Jeremy O'Brien, PsiQuantum CEO and co-founder
PsiQuantum is not looking to be acquired; instead, they aim to build a truly great company capable of delivering transformative technology for the future economy.
